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DECREE No

DECREE No.19-CP ON THE 16TH OF FEBRUARY, 1995 OF THE GOVERNMENT ON THE FOUNDING OF THE VIETNAM SOCIAL INSURANCE

THE GOVERNMENT

Pursuant to the Law on Organization of the Government on the 30th of September, 1992;

Pursuant to Article 150 of the Labor Code;

At the proposal of the Minister-Chairman of the Government Commission on Organization and Personnel,

DECREES:

Article 1.- To set up the Vietnam Social Insurance on the basis of the merger of the present social insurance organizations at the center and in the localities in the Labor, War Invalids and Social Affairs system and the Vietnam General Confederation of Labor, in order to assist the Prime Minister in directing the management of the Social Insurance Fund and carrying out the social insurance regimes and policies as prescribed by the State law.

Article 2.- The Vietnam Social Insurance has the legal person status and its independent accounting system, and is protected by the State. It has its own seal, bank accounts, and its office located in Hanoi City.

The social insurance fund is placed under unified management, according to the financial regime of the State.

Article 3.- The Vietnam Social Insurance has the following tasks and powers:

1. To organize the collection of social insurances as prescribed by the Government, including:

a/ The premiums paid by the employer representing 15% of the total wage fund;

b/ The premiums paid by the laborers representing 5% of their wages;

c/ State contributions and subsidies to ensure the implementation of the social insurance regimes for the laborers;

d/ Other sources of revenue.

2. To manage the Social Insurance Fund, and organize the full, convenient and on-schedule payment of the various allowances under the social insurance scheme to the insured laborers, as prescribed in Articles 142, 143, 144, 145 and 146 of the Labor Code.

3. It is entitled to refuse the payment for any term of social insurance to the ensured, if the authorized State agency concludes on an act of fraud of dossier and document faking. It shall at the same time issue a written communique on this refusal to the insured, the labor using agency, and the law enforcement agency.

4. To pay indemnity for all revenues and expenditures carried out at variance with State regulations on social insurance to the insured persons, and take responsibility before law.

5. To work out and organize the realization of the projects and measures to preserve the value of, and increase, the social insurance fund as prescribed by the Government.

6. To submit to the Prime Minister for decision on the level of managerial expenditures, the revenue and expenditure fees of the social insurance fund, and other regulations related to the social insurance policies to make them conform with the situation of the country in each period.

7. To recommend the Government and the related State agencies on the amendment and supplementation of the social insurance policies to make them conform with the situation of the country in each period.

8. To organize the statistical, accounting and accountancy work; to provide professional guidance in the collection and spending of social insurances and to inspect their realization. To organize the information, and dissemination and explanation of the regimes and policies on social insurance.

9. To inspect the realization of the regimes of social insurance collection and expenditures.

10. To settle in time the complaints of the insured persons, concerning the implementation of the regimes and policies on social insurance.

11. To carry out international cooperation on social insurance, as prescribed by the Government.

12. To manage the organization, personnel and material bases of the Vietnam Social Insurance as prescribed by the State.

Article 4.- The Vietnam Social Insurance is placed under the direct guidance of the Prime Minister, under the State management of the Ministry of Labor, War Invalids and Social Affairs and the concerned State managerial agencies, and the supervision of the trade union organization.

As to the operational budget of the apparatus of the Vietnam Social Insurance, the Vietnam Social Insurance shall, in consultation with the Ministry of Finance, make a proposal to the Prime Minister for decision in a separate document.

Article 5.- The Prime Minister decides to set up the Managerial Board of the Vietnam Social Insurance which is the highest managerial agency of the Vietnam Social Insurance. The Board shall carry out the following main tasks: to direct, supervise and inspect the revenues, expenditures and management of the fund; to decide measures to preserve the value of, and increase, the Social Insurance Fund; to check the final balance of accounts, and pass the annual draft budget; to propose to the Government and the related State agencies to supplement or amend the social insurance policies and regimes; to settle the complaints of the insured persons; to propose the appointment and dismissal of the General Director, the Deputy General Directors of the Vietnam Social Insurance.

The Board shall have a President, a Vice President, and other members to be appointed and dismissed by the Prime Minister.

The assistance apparatus of the Board shall be designated by the Vietnam Social Insurance itself.

Article 6.- The Vietnam Social Insurance is organized into a vertical system from the center to the localities, and has the following structure:

- The Vietnam Social Insurance in the provinces and cities directly under the Central Government.

- The Social Insurance in the districts, towns and cities directly under the provincial authority.

Article 7.- The Vietnam Social Insurance is directly managed and run by the General Director, according to the system of head of agency. The General Director is assisted by a number of Deputy General Directors.

The General Director takes charge of all activities of the Vietnam Social Insurance, with a view to realizing the tasks and powers of the Vietnam Social Insurance defined in Article 3 of this Decree, the Regulation on the organization and activities of the Vietnam Social Insurance, and the decisions of the managerial Board of the Vietnam Social Insurance.

The General Director and Deputy General Directors of the Vietnam Social Insurance shall be appointed and dismissed by the Prime Minister at the proposal of the Managerial Board of the Vietnam Social Insurance.

The Regulation on the organization and concrete operations of the Vietnam Social Insurance (including the working regulation of its Managerial Board) shall be decided by the Prime Minister, at the proposal of the Managerial Board, and the expert opinion of the Minister-Chairman of the Government Commission on Organization and Personnel.

Article 8.- This Decree takes effect from the date of its promulgation. All earlier regulations contrary to this Decree are now annulled.

The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government, the President of the Managing Board of the Vietnam Social Insurance, and the General Director of the Vietnam Social Insurance shall have to implement this Decree.

On behalf of the Government

Prime Minister

VO VAN KIET